See the attached file.
Johnson Company budgeted the following information for 2006:
May June July August
Budgeted purchases $104,000 $110,000 $102,000 $100,000
? Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.
? Johnson purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
? Selling and administrative expenses are budgeted at $40,000 for May and are expected to increase 5% per month. They are paid during the month of acquisition. In addition, budgeted depreciation is $10,000 per month.
? Johnson pays $4,500 per month for its 6% note payable and interest.
? Income taxes are $38,400 for July and are paid in the month incurred.
How much are the budgeted cash disbursements for July?© BrainMass Inc. brainmass.com April 3, 2020, 4:44 pm ad1c9bdddf
Solution contains calculation of the budgeted cash disbursements.